Central and Southern Luzon emerge as Key Industrial Growth Hubs

The Philippine industrial sector continues to assert its pivotal role in economic expansion, with Central and Southern Luzon at the heart of the country’s next growth phase. Developers and locators are accelerating investments in industrial parks, supported by infrastructure upgrades and the steady entry of high-value manufacturers.

Data from Colliers Philippines show that these two corridors are drawing sustained interest from industrial locators, particularly in manufacturing, warehousing, and logistics. Central and Southern Luzon accounted for a quarter of the country’s gross domestic product (GDP) in 2024, underscoring their importance in driving growth alongside Metro Manila.

Industrial Growth Fueled by Connectivity

The completion of major infrastructure projects is expected to strengthen demand further. In Central Luzon, the expansion of Clark International Airport, the Subic-Clark-Manila-Batangas cargo railway, and the upcoming Bulacan International Airport are set to enhance logistics capabilities. Meanwhile, Southern Luzon is benefiting from projects such as the Cavite-Laguna Expressway (CALAX), Cavite-Batangas Expressway (CBEX), and the North-South Commuter Railway (NSCR), which will streamline movement of goods and people.

New Supply in the Pipeline

More than 1,200 hectares of industrial supply are projected to be delivered from 2025 to 2028, with Central Luzon accounting for nearly two-thirds. Developers including Aboitiz InfraCapital, Ayala Land, Robinsons Land, and Filinvest are expanding aggressively, bringing mixed-use communities anchored by industrial parks.

Aboitiz InfraCapital recently launched the first phase of TARI Estate in Tarlac, designed to replicate the success of its LIMA Estate in Batangas by integrating residential, office, retail, and hotel components alongside industrial facilities.

High-Value Manufacturing Gains Ground

Central and Southern Luzon are attracting more high-value manufacturing firms, with locators producing semiconductors, EV parts, green technologies, and electronics. Among the latest investors are Promet Asia and SHERA in Pampanga, luggage manufacturer PLG Prime Global Co. in Bataan, and US-based Birns & Sawyer Inc., which is building a film production facility in New Clark City.

In CALABARZON, multinational firms such as Kolin, Fujifilm, and ATEC are expanding facilities, while Aboitiz InfraCapital’s LIMA Estate reports 13 new locators building facilities that will generate up to 7,000 jobs.

Inclusive Growth Across Regions

Analysts expect industrial activity to spill over to other real estate segments such as residential, office, retail, and leisure, creating multiplier effects for local economies. With national and regional players actively diversifying their developments, the property market is becoming more resilient and inclusive.

“Diversity is key,” Colliers noted. “The industrial sector’s growth will not only strengthen supply chains but also fuel long-term demand drivers across other property sectors ensuring that economic benefits reach communities nationwide.”